1

Haga clic para cambiar el estilo de título

MEDGAZ

Yves Lebas Cepsa Gas Comercializadora

Juan Antonio VeraCepsa / Medgaz

WGC Amsterdam June 2006

A new off shore gas pipeline between Algeria and Spain in the new liberalized

European gas markets’ context

2World Gas Congress – Amsterdam – June 2006

Medgaz – A new gas pipeline

I. Location

II. The technical project

III. The partnership

IV. The Spanish gas market

V. Future challenges

3World Gas Congress – Amsterdam – June 2006

Medgaz – A new gas pipeline

I. Location

II. The technical project

III. The partnership

IV. The Spanish gas market

V. Future challenges

4World Gas Congress – Amsterdam – June 2006

I. Location

AlmeriaAlmeria

Beni SafBeni Saf

Hassi R’melHassi R’mel

AlmeriaAlmeria

Beni SafBeni Saf

Hassi R’melHassi R’mel

Photo from www.nasa.org

LNG regasification

Main gas pipelines

Medgaz pipelineGME

Euskadour pipeline

Lacal

Source: Sonatrach 2006

5World Gas Congress – Amsterdam – June 2006

Medgaz – A new gas pipeline

I. Location

II. The technical project

III. The partnership

IV. The Spanish gas market

V. Future challenges

6World Gas Congress – Amsterdam – June 2006

II. The technical project: studied corridors

From the corridors studies already in the 70s

To the current selected route

7World Gas Congress – Amsterdam – June 2006

II. The technical project: relevant figures

� Length: 200 km

� Max. Depth: 2.165 m

� Diameter: 24 inches ID

� Capacity: 8-10 bcm/year

� Investment: 700 M€

MEDGAZ - Transportation SystemOFFSHORE SECTION

-2200

-2100

-2000

-1900

-1800

-1700

-1600

-1500

-1400

-1300

-1200

-1100

-1000

-900

-800

-700

-600

-500

-400

-300

-200

-100

0

0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200

KP (km)

Wat

er D

epth

(m

)

ALGERIA SPAIN

8World Gas Congress – Amsterdam – June 2006

Medgaz – A new gas pipeline

I. Location

II. The technical project

III. The partnership

IV. The Spanish gas market

V. Future challenges

9World Gas Congress – Amsterdam – June 2006

III. The partnership

� Project presentation to Authorities 2002� EU support: PIC/TEN 2003-2004

� Shareholders’ Agreement 2004 (Feb)

� UE financial support 2005

� Medgaz rated as “A urgent” by Spain 2005 (Jun)� EPC Tenders launched Feb 2006

The Medgaz partners comprise:�The largest gas supplier to Spain

� The second oil company in Spain

� The two major Spanish utilities

� Two global oil & gas majors� One of the main gas company in

Europe

10World Gas Congress – Amsterdam – June 2006

SPANISH GAS MARKET SHARE 2004

Gas Natural

Iberdrola

BP

Unión Fenosa

Endesa

Cepsa

Shell

Rest

0

50

100

150

200

250

300

350

400

450

1997

1998

1999

2000

2001

2002

2003

2004

2005

GW

h

Non-AlgeriaLNG AlgeriaNG Algeria

� Algeria is the closest gas supply to Spain

� Algerian NG: most competitive gas source

� Strong Spanish dependence on Algeria, reduced after 2001

� The main player in the Spanish market had so far unrivalled access to Algerian NG� Medgaz will provide generalized access to the most competitive gas to 4 out of the 7 main gas players in Spain

III. The partnership: Algerian gas supply

Source: CNE

Source: CNE

11World Gas Congress – Amsterdam – June 2006

Medgaz – A new gas pipeline

I. Location

II. The technical project

III. The partnership

IV. The Spanish gas market

V. Future challenges

12World Gas Congress – Amsterdam – June 2006

IV. The Spanish gas market: demand growth

� 10+%/year growth� 1990-2003 Ind. & Commercial� 2004-2011 power generation

� No indigenous gas

� Very limited storage

� LNG biased� Spain as a “gas island”

Source: CNE

Source: CNE

13World Gas Congress – Amsterdam – June 2006

The new Spanish energy plan 2006-2012 tries to address the new market challenge:

� Expected consumption growth

� Change in market structure:�Electricity driven market

�Volatile renewable (wind)

IV. The Spanish gas market: 2011 horizon

Source: Ministerio de Industria 2006

Medgaz role in the 2011 horizon:

� Direct access to gas producing fields (3 -4 hours Hassi-R’Mel to Madrid)

� Pipeline operational flexibility

Source: Ministerio de Industria 2006

14World Gas Congress – Amsterdam – June 2006

Medgaz – A new gas pipeline

I. Location

II. The technical project

III. The partnership

IV. The Spanish gas market

V. Future challenges

15World Gas Congress – Amsterdam – June 2006

V. Future challenges

Medgaz facilitates the integration of the European gas markets

� Consolidates Algeria as the Southern Europe gas strategic partner

� Opens the Spanish market to level ground competition

� Provides incentives to Spanish interconnections with France:

� Spain less of a “gas island”� Spanish access to French storage� French access to Algerian NG

� Widens the opportunities of future African gas pipeline projects (TSGP Nigeria-Algeria)

16

Haga clic para cambiar el estilo de título

Thank you for your attention

Merci de votre attention

Gracias por su atención

Thank you for your attention

Merci de votre attention

Gracias por su atención

www.medgaz.com